Income payment options
A registered retirement income fund (RRIF) gives you the convenience of scheduled income payment options.
RRIFs are tax-deferred plans that pay out your accumulated registered retirement savings plan (RRSP) and deferred profit sharing plan (DPSP) assets over a number of years. With a RRIF, you have control over the payout schedule, you continue to choose your investment options and the remaining assets in the RRIF continue to grow tax-deferred.
Minimum payment calculation
Before age 71, the minimum payment is calculated as:
(value of your RRIF at start of the year) divided by (90 – your age at the start of the year)
After age 71, the minimum RRIF payment is based on a factor provided by the federal government.
Alternatively, the RRIF allows you to calculate the minimum payout based on your spouse’s age. This option must be decided on when the RRIF is set up.
